European gas prices dropped significantly yesterday, pressured by lower residential demand due to higher temperatures and higher Norwegian supply. Indeed, Norwegian flows recovered yesterday, averaging 273 mm cm/day, compared to 253 mm cm/day on Wednesday, after power has been restored at the Kollsnes gas processing plant. As for Russian flows, they were very slightly down…
Brent 1st-nearby prices have neared the key level of $70/b this morning. Expectations of higher oil output from OPEC+ producers and the potential comeback of the Iranian oil on the market are more than offset by evidence of strong economic recovery in the US. The decline in US crude and products stocks as well as…
Financial markets came out of their torpor yesterday, as optimism came back with a vengeance. The release of good US economic reports as well as high expectations ahead of Mr. Biden’s budget announcements have supported equities, a move however thwarted by the parallel rebound in bond yields, the US 10y jumping above 1.6% again. This…
ICE Brent prompt prices weakened at 68.4 $/b, as the dollar rebounded. Fundamentals remain somewhat weak, as Japanese commercial stocks built, amid a continued drop in Japanese refining runs, markedly lower than seasonal patterns. Australia and Singapore were hit with a fresh batch of lockdown measures, limiting the upside for Asian runs. In the west,…
Despite a late downward correction in clean fuel costs after a strong opening, European power prices held gains and closed higher again on Wednesday. Prospects of a sharp drop in wind power generation (from 20 GW at the beginning of the week to 6.2 GW expected next week in Germany) and the combination of relatively high power demand…
